This article is from the Australian Property Journal archive
CO-FOUNDER and managing director of Lifestyle Communities James Kelly will retire from his post in the wake of ABC reports that detailed allegations of “immoral” and “ethical” conduct.
Kelly co-founded Lifestyle Communities over 21 years ago and has served as managing director since the company’s listing on the ASX in 2007. Under his leadership, the business has grown into 33 communities home to more than 5,500 people.
In July, ABC’s 7.30 reported on a group of 80 residents at its Wollert Lifestyle Community on Melbourne’s northern outskirts that had banded together to lodge a claim to the Victorian Civil and Administrative Tribunal (VCAT) over fees they believe are illegal and excessive, which included charging dead people rent and exorbitant charges for residents wanting to sell their home.
The allegations came a few months after Lifestyle Communities had launched a $275 million raising as it sought to go deeper into the land lease sector, going on just few weeks later to downgrade its new home settlements for 2024 financial year.
Among the areas of focus for FY25 outlined by Lifestyle Communities in its full-year results was to “restore trust impacted by recent unbalanced media reporting”.
Kelly will be retiring at the end of calendar 2024, with Lifestyle Communities having commenced the process to find a new CEO. The company’s chair David Blight will assume the role of executive chairman in the meantime.
“James has been the driving force behind Lifestyle Communities, creating a thriving business grounded in purpose and strong culture. His vision, leadership, passion, and drive have been a privilege to witness and are the reasons Lifestyle Communities is the successful company it is today,” Blight said.
Lifestyle Communities had a market capitalisation of $18 million in 2007 and has become a $1 billion business today. Its share price peaked at $23.45 in October 2021 before a steady decline, accelerated by ABC’s reporting. Yesterday shares sank to as low as $8.83 before coming back to $9.15 late in trading.
“While we are saddened by his departure, we have been discussing the timing of James’ retirement for some time and we remain deeply grateful for his contributions and the positive impact he has made in the lives of many,” Blight said.
James Kelly said, “After 21 incredible years with Lifestyle Communities, it’s time for me to say goodbye and embrace a new chapter in my life.
“I feel immense pride in what we’ve built together, starting from that first meeting with Bruce and Dael in a Melbourne café in February 2003, where I sensed we were creating something special.
“I extend my heartfelt thanks to our homeowners for their trust and support. Witnessing their experience in our communities has been the most rewarding aspect of my role, and their stories will always remain close to my heart,” he said.
“As I ‘rewire’ into the next chapter of my life I am looking forward to new adventures – spending more time with family and friends and perhaps exploring a few new business ventures.”
